>> the winner of the street fight, tim. >> karen. >> foot locker. >> i'm melissa lee, see you back here tomorrow. don't go anywhere. mad money with jim cramer starts right now. my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends, just want fewer days like today. my job is not just to entertain you but to educate and coach you. so call me at 1-800-743-cnbc. to accept the beatdown or not accept the beatdown. that is the question. to accept the thrashing that everyone expects, do you just

say this is my lot in life? a real pasting because alas, everyone says we're going to get laid to waste. or do you merely do nothing even though there'll be days like today where the dow tumbled 127 points, s&p sank .4% and the nasdaq plummeted .06%. >> the house of pain. >> it's impossible to be as bullish as you may have been before. given that this market has definitely changed its colors for certain. it's difficult not to panic. when you see headlines like this one. "global tummult grips markets." considering how little we've lost, the averages are down a couple of percent from the highest. i would argue that the implication of global tumult grips markets is you ain't see nothing yet. be afraid, very afraid.

couple that with this stunning revelation from the "new york times." "in a shift interest rates are rising." and you've got a fear factor that makes eating cockroaches and monkey brains seem like chowing down on raisinettes and twinkies. rates have been screaming higher for weeks. but still, like the tumult heading, it's not reassuring, it's frightening and higher rates aren't good for anybody, right? what are they good for? absolutely nothing. what do you do? what do you do if the papers have spoken and the understanding that the federal reserve can't keep interest rates down any longer and it's causing havoc internally. what do you do if so many emerging markets are getting crushed? what's the game plan when brazil is being pulverized, japan's being manipulated. and china's become a pitiful helpless giant.

with the ruling communist party actually allowing the workers to be paid more, i mean what the heck kind of communists are they? the real ones? how did that happen? and when? with all this going on, doesn't it seem silly to own any stocks at all. do we have to take a bear leg and smear the blood on our doors. the angel of financial death will pass over our portfolios? first, let me say, at the moment, i'm not crazy about the market per se. the last time we had this chartist on who showed this kind of volatility has in the last few years produced a sharp selloff within a few weeks time. a lot of people in twitter thought it was. it's one of the reasons why i've taken my cash position to a much higher position than usual. i respect any decline led by interest rates going higher. therefore, i respect this decline. i didn't trust that pivot we had last thursday and rose sharply midday. the defensive stocks, which i'm

warming up to again. third, i don't like big up openings like today because they are sucker traps because they bring out sellers, not buyers. fourth, the rate increases happened so quickly that people who own bond funds have had their assets trashed entirely. you know something, when they see their statements, they will not believe the carnage. and you know lots of institutions have been hurt too. i liked hearing that mortgage applications were higher this week. unless rates start coming down or backing off a little or maybe stay here for a while, something i think has less than a 50/50 chance of happening, will get more negative here. there's one big reason i can't embrace the bear case. i don't see a gigantic repeal of the advance or the bulk of it happening. that's because despite the obsession with the fed and the next move, i believe the real next move if it's to have rates higher will come because we actually have a lot more business being done in this country. see the stock market's a little

like a hospital. we wanted life support when the patient looked like a goner, and that's what dr. bernanke gave us. but if the patient's generally getting better, which is the fed's ultimate goal, why stay with the life support? never lose sight of that. no matter how easy it seems, if the fed keeps rates down to own stocks, we do want sales to grow to be able to own stocks. companies, we want them to do better. we want more loans to be made, more jobs to be created. we want a healthier business climate. that's what makes stocks advance, okay. this obsession with keeping the economy on life support even if business is getting better is wrong. and it distorts what ultimately drives stocks, which is higher profits. right now, we've had solid profits because so many people have been axed. employers are being paid less and productivity has increased. now, look, if we can get some sales growth, the profitability would be off the charts and

that's what you should be wishing for. not a bedridden patient who has better vitals. how can i be sanguine given the so-called global tumult? how can i have fortitude when we're going up the no fed help river and are now facing the horror, the horror, heart of darkness? first off, i am not colonel kurtz, my charitable trust at actionsalertplus.com has raised some cash. second of all, i have patience. and not patients, but patience, with a "c." i think we'll get to the other side where people realize more business is good, not bad. what gives me that patience? some of it's looking at history at the markets with a critical eye for 33 years, which is about 30 years more than of my most o critics.

most of it comes from what the companies tell me. including the best ceos that i admire and my charitable trust owns. like who, you might ask? how about jamie dimon of jpmorgan. he told a tale of optimism as he said at the speech last night. quote, we talk about how bad things are, no one talks about how good it is. hmm. let me take off some of the good he listed. corporate world, first of all, in fabulous shape in terms of liquidity, profitability, leverage all perfect. the consumer's much better shape. fabulous balance sheet, housing, and i quote has turned the corner and it is still highly affordable. and he says we've got a developing home shortage. i know that jamie's been an optimist for ages. with the dow up huge over the last 30 years, was it wrong to be an optimist? no, it was the rigorous view. if rates go higher, jpmorgan will make a heck of a lot more money than it does now, which is why my charitable trust has a huge position in it. jamie says bring it on, i'm

okay. let's put it all together. i think the market's shaky here. raising cash in the brief rallies is the right thing to do. if you went into those emerging market debt or equity funds, you will be whacked harder than you have been so far because they are ground zero for the global tumult that grips the markets. but, i simply don't think i can get you out of everything and back into everything fast enough when the market's done selling. no, nobody can do that. so here's the bottom line, raise a little cash, show a little patience, get a little defensive. and i think you'll be able to ride this one out without too much damage to your portfolio. simple as that. why don't we go to cyrus in new york. cyrus? >> caller: boo-yah, jim, how are you? >> real good. how about you, partner? >> caller: good.

i recently switched all my computers from apple to sony. i noticed the book value of sony was $27 a share before they sold from buildings. given yesterday's announcement, i'm estimating the book value is over $30 a share now, this stock should be trading at least $50 a share giving approximately 1.5 times book value. what's your take on sony, jim? >> you lost me there with that 1.5, that's an impossibility, the company's not doing that well. i think it could rally 10%, and you've got to take the money and run. i'm not talking about some people calling me maurice, either. let's go to renee in delaware, please. >> caller: hi, jim. i saw today where the analysts upgraded lenier, do you think that stock will have an impact on havanian? >> they've done okay here. i didn't expect that, frankly. lenar is a better operator. i know that my friend bob

olstein was on today saying they don't generate a lot of real earnings. i think it's a good company. i do prefer toll to lennar for the record. john? >> caller: jim, love you out here in sacramento, you're our all-time favorite. anyway, i've got a question, talked to you a while back about dole, now they want to take the company, take it private. what's your opinion on dole? >> wow, i've got one word for that and i'll say it three times. >> sell, sell, sell -- >> i don't trust that situation, i want you to get out of it and get out of it now. look, the market's a little shaky here. but you can ride it out. look, damage, yes? raise a little cash, show some patience, get a little defensive, and you'll do just fine. "mad money" will be right back. coming up -- well suited? buying dad a tie this father's day? then you're probably already familiar with fashion icon pvh. can its portfolio of top brands offer more than just runway looks? cramer's got the exclusive with

the ceo fresh off earnings. and later, slam dunk, the heated series continues. but we're not talking basketball. it's a faceoff between two companies that call miami and san antonio home. tonight, a big local bank goes head to head with a real estate. and cramer makes the call. all coming up on "mad money." don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com. or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. [ male announcer ] citi is over 200 years old.

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[ roars ] ♪ [ roars ] ♪ [ roars ] ♪ [ roars ] ♪ [ male announcer ] universal studios summer of survival. ♪ never count out an executioner. i'm talking about -- no, not someone who cuts people's heads off, though i can think of a few companies that might benefit from a purely metaphorical

beheading. just take the master executioner at the helm of pvh, the apparel company you know as calvin klein. the last time pvh reported, the company beat the numbers. management made cautious comments about the integration of the acquisition, the house of calvin klein or at least a part of it. the stock got slammed falling from $112 down to $106. down 5% in a single day. i told you to stick with pvh, stick with manning, fast forward to today. after the close, tonight, the company reports and it shoots the light out, pvh earned $1.91 a share, wall street was looking for $1.35. monster beat on revenues that came in moderately above expectations. and this point i have to wonder, if they're being a little conservative because i think this acquisition is back on track and then some. let's check in with the bankable

chairman of pvh. a man that has me wearing a tommy hilfiger tie and ck shirt today. more about the quarter and where the company is headed. welcome back to "mad money." >> hi, jim, nice to see you again. >> have a seat. congratulations. how did you do it? the last time you were here, you were very worried. but obviously things clicked for you. and it wasn't the weather. in your release over and over, you said the weather's not going our way. >> no, that's absolutely true. it was really our performance across the board driven by the calvin klein business as well as the tommy hilfiger business. we saw customers pulling on a wholesale side pulling of orders forward. so we really think that we're being conservative in our guidance, but we think it's prudent at this time so early in the year. >> last time, we were worried about -- you talked about how spain was bad and italy for calvin klein and too many jeans. were you able to reconfigure that merchandise that fast? >> no, spain and italy continue to be challenging markets, but

the rest of europe, particularly for the tommy business in particular continues to be extremely strong. and our north american calvin klein and tommy hilfiger business posted strong comps in the quarter. we're seeing high single digit increases. >> you gave a talk at a conference recently. and i was amazed. the conference at the end of april, you were talking about numbers here. you were trends plus one and two, trends and turns out, tommy hilfiger -- you were saying was 2 and 3. that came in five and four. may must have been on fire. >> may's been a strong month for us. in north america, the weather has turned. we got into the second quarter. so that's been a positive. >> okay. >> and those brands, you know, really have been performing pretty consistently. >> right. >> posting all of last year double digit comp store increases. those are powerful brands that continue to deliver. and we've been able to execute on that. >> okay. now one of the things, you did

your cautionary comments. one of the reasons why you didn't want to bump the numbers up. you're talking about restructuring in the distribution business in europe. could this mean you'll be able to put calvin klein through your pipe. take it to scandinavia and germany where it's so hot for tommy. can you do that? >> that's the plan. >> it's going to be great. >> i think so, as well. we're uniquely qualified to turn that business around. that was a business that, you know, just three years ago was earning 10% to 12% operating margins earning $75 million of operating income that today as we take the business over, we're planning it to break even. there's tremendous upside there as we start to execute and really deliver against it. >> you also talked about quality that you're improving the quality. wasn't it always good? >> well, calvin klein brand is products across the board. i have to be honest, the jeans component of that business, we're not happy we quality. >> really. wasn't premium the rest of your labels? >> given the price positioning of the brand, not at the same

level we'd like to see it. so we are significantly improving the quality, the design esthetic of the brand. you know, those are brands -- that's a brand in europe and asia that goes out the door in jeans between $100 and $200 for denim. and here it goes out the door between, you know, $60 and $90. so clearly that's a premium price positioning for jeans, it's designer jeans and we need to make sure that the quality's being delivered to the consumer as we've been delivering across all other products. >> now, you called out china and brazil as being good. >> continues to be strong. >> how come we're worried then? >> well, look, i think when you look at the economy overall there, it's had double, 15% growth. we're planning for high single digit growth, getting that kind of leverage with that top line growth, that still delivers, you know. that'll deliver double digit earnings increases. and that's, i think, a prudent way to plan the business right now. >> how are we doing the other

way. pipe for ck some places you didn't have tommy. >> i think, look, we're four months into this and that's a plan that goes forward. i think that's 18 to 24 months out. there's clear opportunity as we integrate this acquisition, stabilize the operating platform in asia and in south america to really bring the -- to utilize the calvin klein platform we acquired from warnaco to take directly the tommy hilfiger business. >> you've been brutally honest about yourself and your company. when things were good, when things were tough, you came on. is calvin klein now where people thought it might be because the hilfiger acquisition. is calvin klein now where you want it to be versus the last quarter when you were on? >> no. i think there's still tremendous positioning, repositioning, particularly in the jeans business that we have to do. i think we have that all planned in the numbers. i think we have the opportunity to outperform the numbers.

but i -- right now, it's not where we'd like to see the business. i think 2014, fall 2014, that's when we're gearing, we think it'd be repositioned the way we'd like it. >> the last time you were on, ron johnson was running jc penney, you called out izod as being good. is he sticking with that plan with izod? >> absolutely. continuing that plan. >> always strong relationships. >> always strong relationships there. and what we're excited about, another component of that business with jc penney is the main floor dress shirt and neckwear business where they're really trying to reinvest in the second half of the year back into inventories to get them better positioned to sell those main floor classification categories that jc penney historically has done so well. so mike is really working very hard to turn that business. i see some real positive signs coming out of there. >> you do. that's so good. >> i feel that back to school and the christmas season we

could see some -- a real turn around in that business. >> everyone pulls for him because he's such a great guy. we all love him. now, i wanted to ask you. there's a couple of things i was trying to figure out, but i couldn't. if you were to try to figure out what the heritage looked like without the bass. bass is a problem. >> in the heritage business, particularly, the toughest part of the business is the bass business. >> now that you've got the warnaco, the speedo, why not close bass? the leverage would be huge. >> we constantly look at pruning the portfolio. >> okay. >> bass is a strong brand. we think we can reposition it back and get it there. if we're not able to do that, we have to look at the alternatives. >> i know this is hypothetical, but if you had had better weather. because now if you extrapolate may. the weather was bad all over the world.

the numbers might have been appreciably better. >> we're happy with the results, but clearly, you know, in north america and europe, if the weather had been more seasonal. i don't want to -- i don't like to play weather man, but had an impact on the business. the fact that we were up against them in the prior year mild spring weather as we came in, so all those things, look, you have to deal with. >> you also said since the quarter. and that's really important. that is really important. manny, you really delivered as we knew you would. and everyone that watches "mad money" knew you would. this stock is going all the way back and then some. stay with cramer. coming up -- sam dunk, the heated series continues. but we're not talking basketball. it's a faceoff between two companies that call miami and san antonio home. tonight, a big local bank goes head to head with a real estate.

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great shooting. who would've thunk it. instead we're using it as a metaphor, an exercise in comparative stock picking. all week, picking the top san antonio based companies against miami's finest. on monday, we had san antonio's valero energy against the miami headquarter burger king. valero eked out a win. and tonight another match-up. cfr, san antonio based bank that we've been recommending for some time versus equity one, eqy. the miami-based retail real estate investment trust. let's take a close look at the two contenders. collin frost is in the business of consumer loans. and a securities division. the company has 110 financial centers and 1,100 atms across the lone star state, $21 billion

worth of assets, which means loans. more important, cullen frost has a terrific reputation, going through the downturns in texas. pretty amazing. these guys have a solid track record of responsible underwriting, lower than average loan losses, and the company has a low cost base of deposits. 40% of cullen frost deposit base is made up of noninterest bearing deposits. that's huge. because, remember, regional bank makes money every day by turning the lights on in the morning. though, through what's known as the net interest margin. you'll often hear it called nim. the rate they paid depositors for money and the high interest rates they charge borrowers. or what they give you on a cd. and cullen frost is paying nothing. literally 40% of the deposits, which means they can afford to keep high credit standards and be very picky about who to lend to. they're already making money away from the lending business. all this and cullen frost having high margin, key metric in banking which came in at 3.45%

in the first quarter. and with rates on the rise, you better believe that number is going higher, especially if it started to taper. jpmorgan came out last night and jamie dimon said they will make so much more money if the fed stops tapering and interest rates go higher. same thing with cullen frost. best of all, though, is the simple fact that cullen frost is from the great state of texas. >> house of pleasure. >> the great state of texas has low taxes, booming oil and gas industry, robust economy, thriving housing market, population growth compared to the rest of the country and unemployment of 6.4%. more than a full percentage point below the national rate and that's falling. those are real good conditions. why it's one of the highest valuations in the group. it's deserving of selling 16 times next year's numbers. how about our other contender, miami's own equity one. here's a real estate investment trust, retail 142 properties, 13

states, bulk of them in the northeast. those are okay markets now. equity one has a lot of exposure in urban areas, prime real estate, zoning restrictions make it fairly difficult to build new urban retail space. we hear that from all of the real estate investment trust guys we have on. equity one reported an excellent quarter on may 1st. coming in at 32 cents, that's a 3 cent beat. the occupancy rate rose 60 basis points from 91.8% and their same property net operating income increased by 3%. plus equity one plans to boost these numbers by selling the 15 worst properties, something could bring in about $450 million and raise the margins here. yet over the last 30 days, equity one has been crushed. stock falling 13% and in a period s&p 500 was flat. that's because the real estate investment trust has gone out of style on the show.

reits were viewed as fixed income alternatives because of the high dividends, right now 3.7% yield. but the return from bonds has improved and investors dump these kinds of -- >> sell, sell, sell -- >> en masse, including equity one. look, a 3.7% yield doesn't protect you from much downside at all anymore. and 3.7% doesn't make up for 11%. meaning the 11% you lost on your principal in the stock in order to pick up 3.7% interest. and this gets at the heart of how you compare regional bank like cullen frost against retail properties all over florida, california, and the northeast. when you're choosing between companies in different sectors, look at more than just the characteristics of each business. you have to consider to the overall environment. because the truth is both cullen frost and equity one are high-quality operators within the respective areas.

cullen frost, 3.1%. but, remember, 50% of a stock's movement comes from its sector. and the performance is a lot to do with the macroeconomic backdrop. back then, a real estate investment trust would have been the stock to buy. today, though, right now, i have to give this match to san antonio because cullen frost bankers is clearly the stock to own going forward. in fact, versus equity one is a perfect example of what works and what doesn't work in a high-interest rate environment. although i expect equity one to do a little bounce. thought this group could bounce last week. i think you could put in a little bounce. we've seen how equity one is crushed by the rise in rates and rates going up and fears that the fed could start tapering as bond buying programs send these rates higher. this has turned it into a falling knife. the stock could come back if we get some clarity from the fed, ben bernanke says he won't be

tapering any time soon or we get an interest rate -- an end of the velocity of the rise. that could even help. but that's a very risky bet to make. meanwhile, the same thing that crushed equity one could be fabulous for cullen frost. the bank could make more money off the loans which results in, yes, that better nim. i want you to know that term because you're going to hear it going forward a lot. i'll try to make it as exciting as possible. it isn't. doesn't have any international baggage unlike the boys that get hammered when there are problems overseas and people worried about currencies. the bottom line, in an environment where rates have been rising and everyone's terrified the defense can start tapering in the future, a bank like cullen frost should thrive while equity one could continue to get crushed. that's one more resounding win for the town of the spurs over

heat city. i just don't know if even lebron can get miami out of this brutal hole or the one in the real world where he simply didn't show up to play. francis in arkansas. francis? >> caller: hi. i've made some money from a stock, the bank of ozarks, do you think it'll split again? and what do you think the future of the stock is? >> well, i like bank of ozarks very much. i do not care -- i don't care about the split. and the business is very strong. i think you have a winner there. that's a great call. why don't we go to phil in north carolina. phil? >> caller: jim, how are you? i want to say big b-b-boo-yah. one quick thing about cole hammel, what are you going to do with this guy? 2-9. >> no, he's been pitching really well. no run support, i think that's really unfair. i think cole's a good guy. >> caller: you should do a buy,

sell or hold on him. >> don't you -- any -- a stock? i get a little fired up. >> caller: yes, yes, yes. listen, i want to thank you. i'm a long-time listener. and, you know, when you make suggestions on buying stocks and selling stocks, that's one thing, but where you're he and shoulders above everybody else is the lessons. you're trading lessons, do you diversify, different sectors, that's where i learn so much from you. >> thank you, that's what we're trying to do. >> reit, cys, i had cys and anally two weeks ago. i'm out of them now. is there a time to get back in? >> i've got a forensic accountant who knows this group better than anybody i've seen. he's saying be very careful, it is not the right time that they may not even know what they own. and that, sir, what i worry about. and what i'm proud of are the

kind words that you said we're doing on "mad money." miami's biting te ining the dus. valero energy beat burger king on monday. tonight san antonio takes it again with cullen frost trumping equity one. 2-0. can miami ever come back? don't move, "lightning round's" next. ♪ [ engine revs ] ♪ [ male announcer ] just when you thought you had experienced performance, a new ride comes along and changes everything. ♪ the 2013 lexus gs, with a dynamically tuned suspension

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is your cholesterol at goal? ask your doctor about crestor. [ female announcer ] if you can't afford your medication, astrazeneca may be able to help. hold on. before we get to the "lightning round," i want to remind you that tomorrow we got a real special show for you. you know i'm a big family guy. you might even get a little tired hearing about my daughters, i don't care. i think it should be a multigenerational activity. that's why tomorrow we're keeping it in the family with the "mad money" it's a family affair show. got a lot of special things coming up. tune in to learn why the family that invests together tries to stay together. and now, it is time, it is time for the "lightning round" on cramer's "mad money." what's that all about? rapid-fire calls, you say the name of the stock, i tell you whether to buy or sell.

play until this sound -- and then the "lightning round" is over. are you ready, skee-daddy? robin in nebraska. robin? >> caller: mr. cramer, you're the greatest. >> thank you, robin. >> caller: georgia gold, it keeps going down and down. >> yeah. frank mitch, the guy who really knows it was just kind of look warm on it and said now it's come down, he kind of likes it. >> buy, buy, buy! >> it's going down of all the housing stocks and i think it's overdone. ed in florida. ed? >> caller: hey, jim. i just want to say, you know, give you my thanks for your insightful comments on individual stocks. >> thank you. >> caller: the one i'm worried about right now is libra. >> that's a winner, not a loser. that's a great company. if you want to take a little profit, ca-ching ca-ching, but that's a good quarter. don in virginia. don? >> caller: boo-yah, jim.

>> boo-yah. >> caller: love the show. >> thank you. >> caller: sisco foods. >> i like the csco. a lot of those stocks up 50%, it's not generating the return i thought it would. let's go to alex in new jersey. alex? >> caller: jim, it's an honor to talk to you. big boo-yah from holland. >> oh, man, fantastic. not that far from me at all. what's up? >> caller: say, listen, i'm looking to see what you think about newmont mining. >> nope. don't like the gold miners, don't like the silver miners. there's a trade developing in them. don't need to blow them out tomorrow, but you want to go, because the refining costs are too high and many things have been going wrong. i don't like them. let's go to kate in michigan. kate? >> caller: hi, jim. how are you? >> real good, kate. how about you? >> caller: good, good.

thank you so much for taking my call. >> my pleasure. >> caller: so excited to talk to a celebrity. >> a recognizable figure. that celebrity thing goes to your head. all right. go ahead. go ahead. >> caller: listen, jim, my stock is cma. >> oh, i like cma. a lot of guys downgrade it. they don't understand, the margin going higher, i like cma. i like others more, but cma is fine with me. sam in new york. sam? >> caller: hey, jim, thanks for taking my call. >> you're welcome. >> caller: my stock is tivo. it's got 1.1 billion in cash on the balance sheet and a market cap of only 1.37. >> i know, makes no sense. they didn't like the settlement that came in that lawsuit. i, on the other hand, feel like there's value here. it's like safe flight, it's up nine. i think there's assets in tivo, i'm blessing owning tivo. and that, ladies and gentlemen, is the conclusion of the "lightning round." the "lightning round" is sponsored by td ameritrade.

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it's been coming. this was market losses again today. we all get one of those big wag fingers from the stadium, bernanke, you name it. people being depressed by the heat's performance. game three pretty miserable. anyway, all i know it's time to batten down the hatches. be sure to survive this market's volatility. what's the smartest way to do it? diversification. let's get to my favorite game, am i diversified which is important on a day like today. call me or tweet me @jimcramer. tell me your top five holdings and i'll tell you if your portfolio's diversified enough. maybe you need to mix it up a little bit. i'd like to start with a tweet @liz negata. warehouser, bristol-myers, emc, eog resources, thank you for your help. and yes, i am in the tent that is going hunting. we had a preservation capital and hunting for capital. and that's where liz is. let's go to work. okay. let me think. all right.

eog is oil, emc is tech, bristol-myers is drug, warehouser is lumber and housing owned by charitable trust we've got an oil, tech, industrial, we've got a wood products and industrial company. i knew liz would rock and she did. well played. why don't we go to robert in illinois. robert? >> caller: hey, jim. this is robert with a big southern illinois boo-yah. >> whoa. carbondale boo-yah. what's up? >> caller: hey. my stocks are walgreen's, ticker symbol wag, union pacific, unp, berkshire hathaway, berk, lo, and abx. >> all right. we'll take it from there. here we go, southern illinois rocks, we know that, walgreen's an illinois based company, it's

a drugstore chain i like very much, don't want my kids smoking, but i understand why you want to own the stock. berkshire hathaway, union pacific on recently, what a smoking good story and barrick don't like the company, but respect the exposure to gold, rails, tobacco, retail, diversify, conglomerate, what's not to like? let's go to another robert in pennsylvania. robert? >> caller: hello, jim. nice to hear you. i've been listening to you for a long time. >> thank you. >> caller: my five stocks are alks. >> okay. >> caller: agnc. >> okay. >> caller: npw, nly and rdn. >> okay. we do have some -- a couple similarities here. american capital, let's say it right now, those are very, very similar, both real estate

mortgage trust. we're going to sell american capital keep annannaly. i'm now going to throw away annaly. and we're going to bring in -- we already have a drug company, mpt is a real estate investment trust invested with health, but not an overlap. let's put in, you know what, let's go with warehouser. it's too much like mortgage, like housing too, we'll go with berkshire. let's go with berkshire hathaway. make that change. we'll keep the american capital, and we'll get rid of the annaly and then i'll feel like we a are -- ♪ hallelujah >> -- diversified. george in new york, george? >> caller: dr. cramer. i've dealt with the rest, i'm on the phone with the best. george from new york city. >> thank you. >> caller: i'm also a member of your travel trust and no matter

wherever i travel to, you're always in front of me. >> you're the best. and thank you to subscribing. i'll tell stephanie link you said that. what's up? >> caller: i have -- let me know what you think about diversified i am, please. facebook, linn, apple and joy. >> wow, got 100% action alerts there. and facebook, we got the big update, i think the bottom is in, that's internet, apple, what can i say that hasn't been said by apple? i don't have much. adt is a big disappointment. but it's a housing play. linn energy, that's been a tough one to own in oil, but i believe in that merger, and joy global, down and out mineral companies, this is a mining company, housing company, this is an oil, this is tech and well this is internet and tech, and i'm telling you that is diversified. there have been tough ones there, but i think this is a portfolio that bounces the moment you get even any snapback

from china. and this company, adt, says something good which so far it hasn't. stay with cramer. clients are always learning more

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and ask an insurance expert about all our benefits today, like our 24/7 support and service, because at liberty mutual insurance, we believe our customers do their best out there in the world, so we do everything we can to be there for them when they need us. plus, you could save hundreds when you switch, up to $423. call... today. liberty mutual insurance -- responsibility. what's your policy? what are you supposed to do when an entire market is wrong? what do you do when it trades wrong and unfair to the rest of the world? i'm talking about the worldwide market for oil, which is right now priced off of brent crude, the european benchmark. currently the brent price is absurdly high. it controls the entire market, i

think it's ridiculous. let's start with a supposition that the world is indeed awash in oil. we're producing 3 million more barrels per day than we were a couple years ago. thanks to the bakken shale, eagleford shale, and alaska when it comes to the amount of recoverable oil. they're the biggest discovery in almost 50 years, canada had a similar increase in capacity, iraq has doubled the output in just a couple of year's time. when it's in freefall, the price of brent oil remains stubbornly high and that's wrong. what's going on? two things, first, the middle east can turn it on or off at will because they've got spare capacity. they've been keeping it high by keeping oil off the market. but second, the go-to energy guy i use at the street.com explained in online conversation with me, brent is a benchmark. the price of brent is set off rapidly in the declining oil fields in the north sea.

the price you pay at the pump is being set by a worldwide market that as it turns out is not really worldwide at all. brent's just a snapshot of the output from four oil fields in one tiny area and those fields are rapidly losing the relevance as well as the recoverable oil. they're getting tapped out plain and simple and stuck with their benchmark because we do import 7.5 million barrels of crude a day in north america. we are stuck with the brent price and it determines the price at the pump too. since we don't have an energy policy and we're not harnessing our shale, natural gas in any meaningful way, we're hostage to an outdated benchmark that keeps us from enjoying the oil resources. i think one reason is our unstated policy set in washington, the fossil fuels should not be encouraged. if we were to harvest the resources we have in this continent, the price of crude in north america would be set here and it would probably be perhaps $20 lower than the price of brent. it would mean the price you pay for the gasoline would be roughly 20% lower, which would

encourage more use, putting carbon in the atmosphere. another reason, we seem to be okay with the status quo. do you hear anyone in washington to say it's time to bust the oil cartel in order to create more jobs, become more secure as a nation? we alone are now the sole reason why our country is still hostage to the brutally unfriendly regimes in the middle east. we could change that with the political will and willing to accept natural gas until they become practical. we don't. last night we had specter energy on with pipelines crisscrossing the country. the ceo made it clear, there's much more oil to be found in the country and scores of years of natural gas. but it's nothing in terms of lower energy prices thanks to the tyranny of brent and very little in terms of jobs. washington turns a blind eye to the possibilities. it's time for all of that to change right now. yet, as the ceo says, there's only a 50/50 chance that crucial keystone pipeline will be approved by the president. enough is enough. let's take back control of the most important commodity in the

world and give our country the prosperity it deserves. stay with cramer. oh, he's a fighter alright. since aflac is helping with his expenses while he can't work, he can focus on his recovery. he doesn't have to worry so much about his mortgage, groceries, or even gas bills. kick! kick... feel it! feel it! feel it! nice work! ♪ you got it! you got it! yes! aflac's gonna help take care of his expenses. and us...we're gonna get him back in fighting shape. ♪ [ male announcer ] see what's happening behind the scenes at aflac.com.

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this remarkable transformation where they sell the canadian division for a huge amount of money. the stock went up too much. but i have been, you know, safely initially and we thought you ought to be in whole foods. there's always a bull market somewhere, i promise to try to find always a bull market somewhere. i promise to find find it for you right here on "mad money." i'm jim cramer. see you tomorrow! nsa leaker edward snowden resurfaced in hong kong today. and tonight i want to know when will he be charged? what will he be charged with? and why aren't american agents going in and snatching him up? the other big story on capitol hill is the immigration reform bill. democrats want immediate legalization. but republicans want border security first. and tonight our exclusive guest is at the center of both stories. south carolina senator lindsey graham joins us live. "the kudlow report" begins right now.